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Case 9-1
Xytech Inc.
JOURNAL ENTRIES
20X0
Jan.1
Asset and Current Liabilities
Able, Capital
Baker, Capital
Cabot, Capital
April 1 Asset and Current Liabilities
Notes payable,
Dec. 31

Able, Capital
Baker, Capital
Cabot, Capital
Income Summary

300,000
100,000
100,000
100,000
100,000
100,000
18,000
18,000
18,000
54,000

GENERAL LEDGER
Notes Payable
100,000

Able, Capital
18,000
Balance

18,000

82,000

Baker, Capital
18,000
Balance 82,000

100,000

100,000

Cabot, Capital
18,000

18,000
Balance 82,000
100,000

JOURNAL ENTRIES
20X1
April 26
Oct. 1

Dec. 31

Asset and Current Liabilitie
Loans payable, Cabot
Bakers, Capital
Able, Capital
Cabot, Capital
Income Summary
Able, Capital
Cabot, Capital

50,000
50,000
82,000
41,000
41,000
12,000
6,000
6,000

18,000

GENERAL LEDGER
Notes Payable

Loans Payable

100,000

50,000

Able, Capital
41,000
82,000

Baker, Capital
82,000

82,000

Cabot, Capital

82,000

6,000

41,000
6,000

Balance 129,000

Balance129,000

Xytech Inc.
Statement of Partners Equity
December 31. 20X1
Bake
Gabot
82,000
82,000

Able
Capital, Jan.1
246,000
Transfer of Interes t
41,000
Net Income
6,000
Capital, Dec. 31
129,000

(82,000)
6,000
----

Total
82,000

41,000
12,000
129,000
258,000

JOURNAL ENTRIES
20X2
Partnership Books
Jan.1
Able, Capital
100,000
Cabot, Capital
100,000
Share of Xytech
258,000
Corporate books
Jan.1 Authorize to issue 500 shares at 100 par common stock
Asset and Current Liabilities
408,000
Notes Payable
100,000
Loans Payable
150,000
Capital Stock
10,000
Share Premium
248,000
20x2
Asset and Current Liabilities
50,000
Notes Payable
50,000
Loans Payable
50,000
Asset and Current Liabilities
50,000
Income Summary
26,000
Retained Earnings
26,000

GENERAL LEDGER
Notes Payable
100,000

Loans Payable
50,000

50,000

50,000
Capital Stock

Share Premium

10,000

Retained earnings

248,000

JOURNAL ENTRIES
20X3
Jan. 1 Share Split from 1000 to 1
Income Summary
Retained earnings

26,000

43,000
43,000

GENERAL LEDGER
Notes Payable
Retained earnings
150,000
26,000

Capital Stock
10,000

Share Premium
248,000
43,000

Basic earnings per share
EPS= Net Income/ Outstanding shares = 43,000/100,000 = $0.43 JOURNAL ENTRIES
20X4
Jan.1
Asset and Current Liabilities
775,000
Capital stock
10,000
Share premium
765,000
Share premium
55,000
A&CL
55,000
Dec.31 Income Summary
68,000
Retained earnings
68,000
GENERAL LEDGER
Notes Payable
Retained earnings

Capital Stock

Share Premium

150,000
69,000

10,000

55,000

10,000

248,000

765,000

68,000

Capital, Jan.1
327,000
Additional Investment
Issue Cost
Net Income
Capital, Dec. 31
1115,000

Xytech Inc.
Statement of Shareholders Equity
December 31. 20X1
Capital Stock
Share Premium
Retained Earnings
10,000
248,000
69,000
10,000

765,000

JOURNAL ENTRIES
20X5
Jan.1
Asset and Current Liabilities
Discount on Bonds Payable
Bonds Patable
Notes Payable
Asset and Current Liabilities

8,000
Retained earnings
GENERAL LEDGER
Notes Payable

775,000

(55,000)
20,000

Total

(55,000)
68,000
137,000

68,000
958,000

475,000
25,000
500,000
150,000
150,000

68,000

Bonds Payable

Discount on Bonds Payable

150,000

150,000

500,000

Capital Stock

25,000

Share Premium

20,000

1,250

Retained Earnings

958,000

137,000
85,000

JOURNAL ENTRIES
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